Slow Down When Receiving an Inheritance

As originally appeared in The Jerusalem Post on February 13, 2026.

Beware how you trifle with your marvelous inheritance, this great land of ordered liberty, for if we stumble and fall, freedom and civilization everywhere will go down in ruin. Henry Cabot Lodge 

So, the Seattle Seahawks won the Superbowl earlier this week. As a long-suffering Seattle sports fan, it’s nice to win a major sports title. While it’s definitely fun to win, I must admit that while I am a true fan and stay up late Sunday nights/Monday mornings to watch their games, I’m not as emotionally invested as I used to be. What gave me the most joy and feeling of success as a parent was watching the games with my sons while eating wings, hot dogs, some steaks, chips and salsa and onion rings between 2am-4am. While I’m still nauseous from that meal days later, I do feel a sense of pride! The food along with the game was a bonding experience. 

Earlier this week I sat with a man who received a substantial inheritance. He is retired and his mother passed away at a rather advanced age as you can figure out. He received about $1,250,000. He never had much savings or pension and is living on a small amount of US Social Security and an even smaller amount of Bituach Leumi. After asking some more questions it became clear that he needs about $30,000 a year in supplementary income. I mentioned that that’s amount is doable and that he can have a portfolio where he will be able to take that out and over time should be able to even slowly grow the portfolio. Then he threw a wrench into the plan. “I forgot to tell you that I inherited $1,250,000, but I promised my married kids(7) money for a down payment, was thinking about starting a vending machine business and was thinking of buying an investment apartment as well because he only needs to put 10% down.  Yikes. That certainly changes things. He literally spread himself too thin and could have potential money problems down the road, especially if he needs to start eating principle from the get-go.

I mentioned that he should scrap the investment property idea. I said that while you only need to put 10% down now, at some point in the not-too-distant future you need to come up with the rest of the money. That amount plus down payment promises to kids will wipe you out. And as for the vending machines, I said to just do things by the book and invest in a moderate growth type of portfolio. Keep it simple, don’t fall for some kind of vending machine scam.

I receive calls all the time from heirs. They have come into money and need help planning and managing it. I can tell you that the above story, while maybe a bit extreme, is quite typical. The difference tends to be that the inheritor is thinking about all the things they want to do with the money and the meeting I mentioned actually went ahead and fulfilled his dreams.

Personal finance guru, Dave Ramsey writes, “Receiving an inheritance from a family member should be a blessing. But too often, it becomes a curse. It’s estimated that $68 trillion worth of assets will pass down from Baby Boomers to younger generations over the next 25 years, and many of those heirs won’t know how to put their inheritance to good use. More than one-third of all inheritors see no change or a decline in their wealth after getting an inheritance. Did you catch that? Some folks see their wealth decrease after they inherit a financial windfall. We’ve seen too many people get an inheritance and then throw it all away. They go on a few vacations, buy a fancy new car, and before they know it, the money is gone and they have nothing to show for it.”

When you receive an inheritance it’s important to take your time before making any decisions. You are in the midst of grieving and you are overly emotional and not able to make rational decisions. I recommend waiting a couple of months before making decisions. Then in honor of the deceased I think it’s a great idea to give some of the money to charity. What better way to honor their name than to help out and give back to society. If you have debt, outside of a mortgage, then pay it off. 

You can certainly use some of this money to improve your financial future. Paying down some or all of your mortgage and investing for the long term are two things that you can do today, that will be hugely beneficial down the road.  

And finally, there is nothing wrong with enjoying some of the money. Obviously, it depends on your specific financial situation, and how much you have received, but in most cases using some money for a vacation, or the much-needed kitchen renovation is reasonable.

Be smart and deliberate after receiving an inheritance to make sure that you take care of your own financial future before you start promising the world to others.

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.